Elizabeth Warren To Education Dept: Stop Profiting Off Student Loans

Thursday, February 26, 2015

GoLocalWorcester News Team

Senator Elizabeth Warren

Several United States Senators, including Elizabeth Warren (D-Mass), have sent a letter asking the U.S. Department of Education to implement the directive it has been given by Congress to ensure that young people struggling with federal student debt have the opportunity to build a strong future for themselves.

"It is striking that the Department still intends to generate such significant revenue from federal loan programs designed to help young people get an affordable education," the Senators wrote in the letter.

In the letter, the Senators note that recent estimates show that the federal government will produce $110 billion in profits from it's student loan program over the next decade.

The letter also explains that the profits will be collected because the Department of Education has failed to use its existing legal authority to help struggling borrowers.